Gumba, Tessa Anjelika

Angkas is a Singaporean-owned company

conceptualized by its founder and CEO Angeline
Tham sometime in 2015. DBDOYC Inc. was set
up as Angkas's operator. The legality of Angkas'
operation has been challenged by the
government.
The provisions of this Act shall control, as
far as they apply, the registration and
operation of motor vehicles and the
licensing of owners, dealers, conductors,
drivers, and similar matters.
 Republic Act (R.A.) No. 4136 or the Land
Transportation and Traffic Code

Republic Act (R.A.) No. 4136 or the Land Transportation and Traffic Code
mandates that motorcycles can only be registered as private vehicles or as
government vehicles, but not vehicles for hire. Under the law, motorcycles
cannot be used as public utility vehicles, thus making the operations of
motorcycles-for-hire and motorcycle ride-hailing apps like Angkas illegal.

Section 7 of the Code states that motorcycles, scooters or motor wheel

attachments "shall not be used for hire under any circumstances and
shall not be used to solicit, accept, or be used to transport passengers
or freight for pay."
 The Land Transportation Franchising and Regulatory
Board (LTFRB) suspended Angkas' operation in November
2017 over lack of a business permit and safety concerns
regarding the usage of motorcycles in ride-sharing services.

LTFRB's move was still challenged by Angkas before the

Mandaluyong Regional Trial Court which made a decision on
August 20, 2018 which barred LTFRB from arresting Angkas
drivers. Angkas resumed operations the following month.

In December 2018, the Supreme Court issued a

temporary restraining order which put on hold the
implementation of the Mandaluyong court's decision. Despite
the high court's TRO, Angkas continued operations risking its
drivers to be arrested since it believed that the ruling didn't
concern the legality of the company's operations itself.
 The government through the Department of Transportation (DOTr)
announced in May 2019 that it would provisionally allow Angkas to operate
again. Operations of Angkas' motorcycle taxis in Metro Manila and Metro
Cebu were allowed by the government for six months from June 2019 so the
firm's operation could be monitored by the state as part of a study regarding
the legality of motorcycles as public utility vehicles.

The pilot operations which was originally set to end in December 26,
2019 was extended by the technical working group of the DOTr until March
23, 2020 with the inclusion of two competitors, JoyRide and Move It.
● The problem for Angkas, and all motorcycle drivers who want to make cash through
giving rides, is that the RA 4136 only allows motorcycles as private or government
vehicles.

● According to the law, private vehicles "shall not be used for hire under any
circumstances," while government vehicles, by principle, can only be used in fulfilling
government functions.

● Angkas could have been recognized in a relatively new category, Transport Network
Vehicle service (TNVS) too, as it had allowed private vehicles to be booked by the public
through mobile applications.

● Unfortunately for motorcycle riders, the Department of Transportation order which

recognized TNVS (2015-011) only covers sedans, Asian utility vehicles, Sports utility
vehicles, vans, and other 4-wheelers.
NO.

"public service" includes every person that now or hereafter may own,
operate, manage, or control in the Philippines, for hire or compensation,
with general or limited clientele, whether permanent, occasional or
accidental, and done for general business purposes, any common carrier,
railroad, street railway, traction railway, sub-way motor vehicle, either for
freight or passenger, or both with or without fixed route and whatever may
be its classification. Therefore, No public service shall operate in the
Philippines without possessing a CPC.
Angkas is a transportation provider and its accredited drivers are common carriers
engaged in rendering public service which is subject to their regulation.

It is practically functioning as a booking agent, or acts as a third-party liaison for its

accredited bikers. These bikers offer transportation services to wiling public
consumers, and on the other hand, these services may be readily accessed by
anyone who chooses to download the Angkas app.
The fact that its drivers are not physically hailed on the street does not
automatically render Angkas-accredited drivers as private carriers. Still when
they do so log-in, they make their services publicly available. In other words,
when they put themselves online, their services are bound for indiscriminate
public consumption.

RA 4136 is the law. Unless it is changed, then that is the only time that they can
be allowed.
FACTS:

In recognition of technological innovations which allowed for

the proliferation of new ways of delivering and offering public
transportation, the DOTC, through DO 2015-11, created two
(2) new classifications, namely, Transportation Network
Companies (TNC) and Transportation Network Vehicle Service
(TNVS).

TNVS is defined as "a [PUV] accredited with a [TNC], which is

granted authority or franchise by the LTFRB to run a public
transport service." DO 2017-11 further provided in Item 2.2
thereof that "[m]otorcycles x x x are likewise not allowed as
public transport conveyance."

December 2016, launched "Angkas," an online and on-demand

motorcycle- hailing mobile application (Angkas or Angkas app)
that pairs drivers of motorcycles with potential passengers
without, however, obtaining the mandatory certificate of TNC
accreditation from the LTFRB.
FACTS:

LTFRB issued a press release on January 27, 2017 informing

the riding public that DBDOYC, which is considered as a TNC,
cannot legally operate. Despite such warning, however,
DBDOYC continued to operate and offer its services to the
riding public.

RTC issued a Temporary Restraining Order (TRO) finding

DBDOYC's business not subject to any regulation nor
prohibited under existing law. It added that since the use of
DBDOYC's internet-based mobile application is not contrary to
law, morals, good customs, public order, or public policy, a
clear and unmistakable right has been established in favor of
DBDOYC such that if petitioners prohibit the operation of
Angkas, the same would cause irreparable injury to the
company and that the Angkas biker's offer of transportation
services to a potential passenger is a purely private
arrangement using DBDOYC's application.
ISSUE:
Whether or not the motorcycles in Angkas are classified as
private carriers and not offering public service.
RULING:
No. Angkas are common carriers.

Article 1732 of the Civil Code does not distinguish between a

carrier who offers its services to the general public and one
who offers services or solicits business only from a narrow
segment of the general population.

As such, the fact that its drivers are not physically hailed on the
street does not automatically render Angkas-accredited drivers
as private carriers.
RULING:

Moreover, based on the way the app works, it appears that

there is really no contractual discretion between the Angkas
bikers and would- be passengers because the app
automatically pairs them up based on algorithmic procedures.

Verily, the absence of any true choice on these material

contractual points apparently contradicts the postulation that
the Angkas app merely facilitates a purely private arrangement
between the biker and his passenger.

The business of holding one's self out as a transportation

service provider, whether done through online platforms or not,
appears to be one which is imbued with public interest and
thus, deserves appropriate regulations. Therefore, it is the
petitioners' position that DBDOYC is a transportation provider
and its accredited drivers are common carriers engaged in
rendering public service which is subject to their regulation.
● Violation Concerning Licensing
● Violations concerning registration
● Violations concerning number plates and stickers
● Violations relative to equipment parts, accessories, devices and
marking of motor vehicle
● Violations concerning weights and load limits